Consumer confidence declined in early May, as reported by the Conference Board. The index fell by 0.7 percentage points to 93.1, although this level remains higher than in January. In contrast, the University of Michigan's survey indicated a more negative economic outlook, reaching new lows. Both surveys suggest that consumers are adjusting their economic views due to rising energy prices linked to ongoing geopolitical tensions.
The Conference Board noted an increase in consumer mentions of prices and oil and gas for the second consecutive month, alongside elevated concerns about the inflationary effects of the conflict in the Middle East. The survey cutoff date was May 19, during a period of rising global prices.
The differences in sentiment between the two surveys may stem from their methodologies. The University of Michigan survey emphasizes purchasing power and financial conditions, which have been under pressure from inflation. Conversely, the Conference Board focuses on labor market health, which has remained relatively stable despite some hiring slowdowns.